REITs is an instrument for collection of investments providing investors the opportunity to invest in real estate assets such as hotels, offices, malls, plazas, with a purpose to produce income for unit holders. REITs portfolio is professionally managed and capital is generated from assets. The major reasons why one should choose REITs are:
- REITs provide investors with small capital base the opportunity to invest in Real Estate.
- In periods of robust economic activity, an increase in the value of Real estate is reflected in REIT stocks that appreciate considerably.
- Being a flow through entity, REITs are tax exempt on distribution of ninety percent profits. This prevents double taxation as income derived from REITs is taxed only at the individual level.
